Online Credit Card Processing: An Overview
Online payment processing leverages innovative technologies that allow companies to accept payments via the web, including by credit card. Credit card processing companies are merchant-appointed businesses that enable these payments. The timesaving that occurs when companies utilize credit card processing services allows them to concentrate on their core business and avoid the hassle of manual payments like paper checks.
YapStone: Processing Millions of Payments Annually
YapStone’s credit card processing solutions include powerful features developed through years of experience as a payment industry leader. These include detailed reporting that helps businesses reconcile and gain insights from analytics, and the ability to handle industry-specific data. YapStone is fully PCI Level One certified, and offers solutions that focus on reliability and security.
How Does Online Credit Card Processing Work? *
There are a series of steps that take place in the processing of credit card transactions:
Step 1: User Initiates Online Payment
The user signs in to a YapStone site or app to pay rent, HOA dues, vacation home rental charges, inn charges or a church donation, and selects credit card as the method of payment. Next, the user provides information such as name, credit card details, and billing address, and then submits a payment.
Step 2: YapStone to Payment Processor
YapStone relays the details of the transaction to its payment processor using a dedicated link that’s monitored 24 x 7 to ensure that credit card payment processing is not interrupted.
Step 3: Payment Processor to Credit Card Networks to Card Issuing Bank
To validate the payment details, the payment processor sends them through the credit card networks (Visa, MasterCard, American Express, Discover) that then relay them to the card-issuing bank for authorization.
Step 4: Credit Card Issuing Bank
The user’s card-issuing bank approves/denies the transaction based on the card’s status and whether the transaction is within the credit limit of the cardholder.
Step 5: Payment Processor to Credit Card Networks to YapStone
In the event the payment is approved, the user is charged by the card issuer who sends the funds to the card networks less fees to cover costs such as credit risk and customer rewards. The card networks send the transaction-approved status back to the payment processor that then notifies YapStone and passes on the funds, minus the fees that apply.
Step 6: YapStone to User
YapStone informs the user about whether the transaction was approved or denied through the online payment interface. If the payment is denied, YapStone’s payment gateway notifies the site or app and because the card issuer didn’t authorize the transaction, no further action occurs.
Step 7: YapStone to Merchant
Lastly, YapStone transfers funds from its bank account to the merchant’s account. The transfer normally takes 1-2 business days. A receipt is then emailed to the user and payment receipt notifications are relayed to the merchant. Additionally, detailed YapStone merchant reports update in real-time, including the Transaction Activity Report, Batch Reconciliation Report and Transaction Summary Report.
*Not all online credit card payment processing follows this flow. YapStone offers several processing options, of which this is just one possible scenario.
YapStone: Best Credit Card Processing for Check Dominated Industries
When you work with YapStone, we consider you to be a valued partner rather than a customer. That’s one big reason why all types of businesses, from property management companies to vacation rental owners to inns and B&Bs to non-profits, allow us to handle their credit card processing online. Of course, there’s also our extensive knowledge of the industries we work in, our sophisticated payment and risk management platform, and the fact that we process 8-billion dollars worth of electronic payments annually.